Resale Levy

Those who have previously bought a flat from the HDB or taken a CPF Housing Grant will have to pay a resale levy when they next buy a flat from the HDB. The resale levy is meant to reduce the subsidy on the second subsidised flat so as to maintain a fair allocation of public housing subsidies between first- and second-timer citizen families. You may use the Resale Levy Calculator to find out the amount of levy payable.

Amount Payable under the Revised Resale Levy Policy

The amount of resale levy is graded according to the flat type of the flat owners’ first subsidised flat. Under the revised policy, flat owners whose first subsidised flat is a 2-room flat will pay a resale levy of $15,000. Those whose first subsidised flat is a 3-room, 4-room, 5-room and Executive flat will pay a resale levy of $30,000, $40,000, $45,000 and $50,000 respectively when they purchase a second subsidised flat.

* only applicable for those who submit their resale application and book a 2nd subsidised flat on/after 3 March 2006.

Which Resale Levy Policy applies to you

The revised resale levy has been implemented from 03 Mar 2006. The revised resale levy policy will apply to 2nd-timer applicants who book their 2nd subsidised flat from HDB and submit their resale application to sell their first subsidised flat, both of which must be on or after 3 March 2006.

The following flat owners will come under the Previous Resale Levy Policy:

Booked a second subsidised flat or an Executive Condominium unit from the developer before 3 Mar 2006. This is regardless of whether they have sold or submitted a resale application to sell the first subsidised flat, or

Sold the first subsidised flat and opted for deferred resale levy, or

Submitted a resale application to HDB before 3 March 2006 for the sale of their first subsidised flat

Amount Payable under the Previous Resale Levy Policy

Below are the charges under the Previous Resale Levy Policy, i.e. based on resale price or 90% of market valuation, whichever is higher:

Flat Type

Resale Levy payable by family grant recipient

+Resale Levy payable by singles/half grant recipient

2-room

*10% / 15%

*5% / 7.5%

3-room

20%

10%

4-room

22.5%

11.25%

5-room & Executive

25%

12.5%

*2-room flat sellers pay a lower rate, i.e. 10% or 5%, only if they buy a bigger flat direct from HDB.
+These resale levy rates apply only to sellers of flats previously bought with singles grant and who submit their resale applications on or after 15 Sep 2004

Resale Levy Payable by Single Grant recipients

Regardless of the applicability of Revised or Previous Resale Levy Policy, single citizens, who have purchased resale flats with the lower CPF Housing Grant for Singles, need to pay only half the levy amount when they subsequently form a family and buy or take over the ownership of a second subsidised flat.

Making Payment for the Resale Levy

The resale levy payable is determined at the point of booking of the second subsidised flat. The payment of resale levy is regardless of the type of ownership (i.e. joint-tenancy or tenancy-in-common) and the share of interest in the flat.

If you are buying your second subsidised flat, you can:

Pay the resale levy immediately at the point of resale, i.e. when selling your subsidised flat or

Defer the payment until you buy another flat from HDB. If you come under the previous resale levy policy and opt for this, an interest at the prevailing rate of 5% per annum will be charged.

You can pay the Resale Levy with either/combination of the following:

with your sale proceeds or

cash

HDB’s mortgage financing is not extended for the payment of the resale levy

Situation

Procedure

If you

Book a second subsidised flat on or after 3 Mar 2006, and

Sell your first subsidised flat after taking possession of the second subsidised flat

The resale levy will be deducted from the sale proceeds when you sell your first subsidised flat in the open market

Any shortfall will have to be topped-up in cash

If you

Book a second subsidised flat on or after 3 Mar 2006, and

Sell your first subsidised flat before taking possession of the second subsidised flat

You can choose to pay resale levy at the point of:

Selling your existing flat in the open market, or

Taking possession of the second subsidised flat

If you pay at point of your resale transaction, i.e. when selling your subsidised flat

The resale levy will be deducted from the sale proceeds

Any shortfall will have to be topped-up in cash

Otherwise, the resale levy must be paid in cash before you can take possession of your second subsidised flat

If you

Submit an application to sell your first subsidised flat on or after 3 Mar 2006, and

Subsequently book a second subsidised flat on or after 3 Mar 2006

The resale levy has to be paid in cash before you can take possession of your second subsidised flat

Determining If Your First HDB Is A Subsidised Flat

If the answer is yes to any of the conditions below, it is considered that you have taken a housing subsidy and will be applicable to pay the resale levy stated above according to the size of your subsidised flat.

Bought, taken over ownership (by way of gift or otherwise) acquired an interest in, sold or transferred (by way of gift or otherwise) a Studio Apartment or flat direct from HDB, a HDB Resale Flat bought under the CPF Housing Grant scheme, DBSS flat or EC unit.

Taken other forms of housing subsidy (such as taken benefits under the Selective En Bloc Redevelopment Scheme (SERS), privatisation of HUDC estate etc.).

Unlocked part of the housing equity under the Lease Buyback Scheme (LBS) or transferred a flat under the LBS

Surrendered a Studio Apartment or a flat previously bought from HDB, an HDB Resale flat bought under the CPF Housing Grant scheme or a DBSS flat.